Sea change for China in SA kelp

China’s second-largest processor of seaweed has settled a multimillion-dollar investment in seaweed gathering at several beaches in South Australia.

Qingdao Gather Great Ocean Algae Industry Group Co purchased Australian Kelp Products and a licence ­allowing seaweed collection along the Limestone Coast in the south-east of the state. Qingdao was advised on the deal by Piper Alderman.

Qingdao plans to invest a further $21 million over the next three years in the operation, which includes a processing plant.

Piper Alderman partner Simon Venus said the investment was ­testament that the Chinese were investing in more technical agricultural opportunities in Australia and not just the headline billion-dollar transactions.

He said there were some challenges in steering the Chinese company into the investment.